InvestorQ : What is the trading view in markets for Wednesday 07 April 2021? Can we see Sensex above 50,000 once again?
Niti Shenoi made post

What is the trading view in markets for Wednesday 07 April 2021? Can we see Sensex above 50,000 once again?

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diksha shah answered.
8 months ago
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The Nifty rallied 46 points at close on Tuesday, but that could be misleading as the Nifty was more than 100 points up at one point of time. However, selling pressure in banking stocks and financials resulted in gains tapering. FMCG and metals showed positive trend on Tuesday even as the financials were under pressure.

The monetary policy announcement is expected around mid-day on 07 April. On the rates front, the RBI is likely to hold repo rates at 4% and the stance as accommodative as inflation is under control and growth needs a boost at this point. However, the language of the MPC on inflation and GDP will be critical inputs.

FPI action continued to be negative on 06 April with net selling of Rs.1093 crore although the domestic institutions bought Rs.417 crore in the equities market. FPIs have been generally worried about the possible impact of the COVID-related lockdowns being and apprehensions that the recovery in GDP may become more back-ended.

Dow closed weak while NASDAQ was relatively strong on Tuesday. European markets were positive with the UK index gaining over 140 bps. However, SGX Nifty is flat to tepid in early trades and for the time being, the big influencing factor would be the monetary policy and the language of the RBI.

Regarding your query on Sensex 50,000, that is the level that has proved to be the resistance for the Sensex in the last few months as it failed to decisively sustain above that level and most institutional investors appear to be diffident about holding on at higher levels. A dovish monetary policy with good Q4 results could do the trick.

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